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When we called around to folks in New York’s white-collar defense bar Monday afternoon, after The Wall Street Journal reported that agents from the Federal Bureau of Investigations had raided the offices of three Connecticut hedge funds, we learned a couple of things. First, the Journal’s great scoop this weekend about the government’s “vast insider-trading probe” of hedge funds, mutual funds, and investment bankers came as a bit of a surprise even to big names in the white-collar bar; before the Journal story, four lawyers told us, there’s wasn’t a lot of buzz in white-collar circles about this sort of wide-ranging criminal insider-trading investigation with dozens of potential defendants. “There seems to be an unusual lack of information about this case,” one lawyer told us, although we did hear that a while back, both the Securities and Exchange Commission and the New York Attorney General sent out subpoenas asking about the relationship between the “expert network” and hedge funds and banks. And second, hedge funds–even those not identified in the Journal or other stories about the investigation, spent the weekend scrambling for counsel. One lawyer told us he was retained by two funds this weekend, neither of which has been identified as a target. “It’s making people really nervous in the hedge fund community,” he said. Three other white-collar defense lawyers told us they’d fielded lots of e-mails and phone calls this weekend about the investigation. Few, however, are willing to disclose their representations–and no one would tell us about clients whose names haven’t surfaced. Here’s what we do know. As we’ve previously reported, David Zornow of Skadden, Arps, Slate, Meagher & Flom is defending the French medical researcher accusing of leaking information about a clinical trial of a Hepatitis-C treatment to hedge funds that trade in healthcare stocks. (Last week a Manhattan federal district court magistrate freed the physician, Yves Benhamou, on $3 million bail.) James Benjamin Jr. of Akin Gump Strauss Hauer & Feld is defending Chip Skowron, a former portfolio manager at Front Point partners who has been placed on leave in connection with the case against Benhamou, according to the Journal. Sources have told us that it’s not clear the Benhamou case and Skowron investigation are related to the wider probe disclosed this weekend by the Journal. Former Jeffries Group hedge fund manager Joseph Contorinis, who was convicted of insider trading in Manhattan federal district court in October, was defended by lawyers from Paul, Weiss, Rifkind, Wharton & Garrison. A onetime S.A.C. Capital analyst linked to Contorinis, Jonathan Hollander, is represented by Aitan Goelman of Zuckerman Spaeder. Goelman told us Hollander has not been charged by the Securities and Exchange Commission or indicted by the U.S. Attorneys office, and is not involved in the wide-ranging investigation disclosed this weekend. “I think a lot of this stuff is getting scrambled up together in the media,” Goelman told us. “There’s just a general push in the Southern District to look at insider trading.” Several reports (see here and here, for example) have identified S.A.C. Capital as a target of the insider-trading investigation that led to Monday’s raids. Martin Klotz of Willkie Farr & Gallagher is regular outside counsel to S.A.C.; as we reported earlier this month, the Willkie lawyer recently represented the hedge fund in obtaining a public apology from its onetime accuser Biovail. We called to ask Klotz if he’s representing S.A.C. or its founder, Steven Cohen. Our call was returned by an S.A.C. spokesman who said, “Last I checked, S.A.C. hasn’t been accused of anything.” We’ll keep you posted as we find out about additional representations in this fast-developing story.

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